Key Points
- Bitcoin cash price is trading with a positive structure above the 0 support against the US Dollar.
- There is an ascending channel in place with support at 0 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is likely to move higher above the 0 and 0 resistance levels in the near term.
Bitcoin cash price is consolidating above 0 against the US Dollar. BCH/USD could accelerate higher once buyers clear the 0 resistance area.
Bitcoin Cash Price Analysis
Yesterday, we saw a decent upside move from the 0 support area in bitcoin cash price against the US Dollar. The BCH/USD pair traded above the 0 level and settled above the 100 hourly simple moving average. Later, it gained traction and spiked above the 0 resistance, but it failed to hold gains. An intraday high was formed at 1.6 and the price started a downside correction.
It moved below the 23.6% Fib retracement level of the recent wave from the 8 low to 1 high. However, there are many supports on the downside near the 5 and 0 levels. There is also an ascending channel in place with support at 0 on the hourly chart of the BCH/USD pair. Below the channel support, the 100 hourly SMA is positioned near the 3 level. Moreover, the 50% Fib retracement level of the recent wave from the 8 low to 1 high is at 5. Therefore, if the pair declines in the short term, it is likely to find support near the 0 and 5 levels.
Looking at the chart, BCH price is positioned nicely for more gains above 0. There could be a downside correction, but sooner or later, the price may test 0.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently near the 50 level.
Major Support Level – 5
Major Resistance Level – 0
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